CHAPTER - I

GENERAL INFORMATION

۩ COMPANY INTRODUCTION
۩ ORGANIGATION STRUCTURE
۩ MISSION, VISION AND VALUE
۩ FACT SHEET OF THE COMPANY
۩ MILESTONE
۩ AWARDS
۩ ISO CERTIFICATE
۩ PRESIDENT TALK

1
۩ COMPANY INTRODUCTION

C
oca-Cola, the product that has given the world its best-known
taste was born in Atlanta, Georgia, on May 8, 1886. Coca-
Cola Company is the world’s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and
syrups, used to produce nearly 400 beverage brands. It sells beverage
concentrates and syrups to bottling and canning operators, distributors,
fountain retailers and fountain wholesalers. The Company’s beverage
products comprises of bottled and canned soft drinks as well as
concentrates, syrups and not-ready-to-drink powder products. In addition
to this, it also produces and markets sports drinks, tea and coffee. The
Coca-Cola Company began building its global network in the 1920s.
Now operating in more than 200 countries and producing nearly 400
brands, the Coca-Cola system has successfully applied a simple formula
on a global scale: “Provide a moment of refreshment for a small amount
of money- a billion times a day.”

The Coca-Cola Company and its network of bottlers comprise the most
sophisticated and pervasive production and distribution system in the
world. More than anything, that system is dedicated to people working
long and hard to sell the products manufactured by the Company. This
unique worldwide system has made The Coca-Cola Company the world’s
premier soft-drink enterprise. From Boston to Beijing, from Montreal to
Moscow, Coca-Cola, more than any other consumer product, has brought
pleasure to thirsty consumers around the globe. For more than 115 years,
Coca-Cola has created a special moment of pleasure for hundreds of
millions of people every day.

The Company aims at increasing shareowner value over time. It

accomplishes this by working with its business partners to deliver
satisfaction and value to consumers through a worldwide system of
superior brands and services, thus increasing brand equity on a global
basis. They aim at managing their business well with people who are
strongly committed to the Company values and culture and providing an
appropriately controlled environment, to meet business goals and
objectives. The associates of this Company jointly take responsibility to

2
ensure compliance with the framework of policies and protect the
Company’s assets and resources whilst limiting business risks.

The biz.system of coca-cola in India directly employs approximately

6,000 people, & indirectly creates employment for many more related
industries throw our wash procurement, supply and distribution system.

The vast Indian operations comprise 25 companies owned bottling

operations & 24 franchises –owned bottling operations. The apart a
network of contract packers also mfg. a range of the product for company.
On the distribution front, 10 tone trucks, open-bay three wheelers that can
navigate the narrow alleyways of Indian cities, ensure that our product
available in each corner of the country.

The coca cola is responsible for the mfg. distribution & sales of product
across the country.

3
۩ORGANIGATION STRUCTURE

Chief Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Regional Vice President (Central)

ORGANIZATION STRUCTURE IN COCA-COLA, INIDA

4
 Region Vice
President

AGM/AOD
Unit 1

AGM/AOD
Unit 2

AGM/AOD
Unit 3

AGM/AOD
Unit4

Region Finance

Region Human
Resource

Region Customer
Service

Region External
Affairs

Region Cold Drink

Region Legal

Region BSG

Region
Director/Manager

Region Capability
ORGANIZATION STRUCTURE IN COCA-COLA, INDIARegion Channel
Management

5
ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN
HCCBPL:

AGM/AOD

Human General
Plant Route to Resource Finance Sales
Manager Market Manager Manager Manager

Area
Area Capabilit
Channel
Sales y
Manager
Manager Manager

Sales Marketin Sales

Executive g Trainers

Market
Key
Develope
Accounts
r

Distributor
s
And
Salesmen
ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

۩ MISSION, VISION AND VALUE

6
O
ur mission, vision and values outline who we are, what we
seek to achieve, and how we want to achieve it. They provide
a clear direction for our Company and help ensure that we
are all working toward the same goals.

• OUR MISSION

Our mission declares our purpose as a company. It serves as the standard

against which we weigh our actions and decisions. It is the foundation of
our Manifesto.

To refresh the world in body, mind and spirit.

To inspire moments of optimism through our brands and our actions.

To create value and make a difference everywhere we engage.

• OUR VISION

Our vision guides every aspect of our business by describing what we

need to accomplish in order to continue achieving sustainable growth.

People: Being a great place to work where people are inspired to be the
best they can be.
Portfolio: Bringing to the world a portfolio of quality beverage brands
that anticipate and satisfy people's desires and needs.
Partners: Nurturing a winning network of customers and suppliers,
together we create mutual, enduring value.
Planet: Being a responsible citizen that makes a difference by helping
build and support sustainable communities.
Profit: Maximizing long-term return to shareowners while being mindful
of our overall responsibilities.

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Coca-Cola is guided by shared values that both the employees as
individuals and the Company will live by; the values being:

• LEADERSHIP: The courage to shape a better future

• PASSION: Committed in heart and mind

• INTEGRITY: Be real

• ACCOUNTABILITY: If it is to be, it’s up to me

• COLLABORATION: Leverage collective genius

• INNOVATION: Seek, imagine, create, delight

• QUALITY: What we do, we do well

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۩ FACT SHEET OF THE COMPANY

T
he Coca-Cola Company is the world’s largest beverage
company, refreshing consumers with more than 2,800
products. Along with Coca-Cola®, recognized as the world’s
most valuable brand, the Company’s portfolio includes 12
other billion dollar brands, including Diet Coke®, Fanta®, Sprite®,
Coca-Cola Zero™, vitaminwater®, POWERADE®,Minute Maid® and
Georgia™ Coffee. Globally, we are the No. 1 provider of sparkling
beverages, juices and juice drinks and ready-to-drink teas and coffees.
Through the world’s largest beverage distribution system, consumers in
more than 200 countries enjoy the Company’s beverages at a rate of 1.5
billion servings a day. With an enduring commitment to building
sustainable communities, our Company is focused on initiatives that
protect the environment, conserve resources and enhance the economic
development of the communities where we operate.

Fast Facts:

• Established: 1886
• Ranking: We own 4 of the world’s top 5 nonalcoholic sparkling
beverage brands: Coca-Cola, Diet Coke,
Sprite and Fanta
• Company Associates: 90,500 worldwide (as of December 31, 2007)
• Operational Reach: 200+ countries
• Consumer Servings (per day): 1.5 billion
• Beverage Variety: We offer more than 2,800 products including diet and
regular sparkling beverages, and still beverages such as 100 percent
juices, juice drinks, waters, sports and energy drinks, teas and coffees,
and milk-and soy-based beverages.
• New York Stock Exchange Ticker Symbol: KO

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Our Commitment to Sustainability – 2007/2008 Highlights

• Respecting People – We offered more than 1,600 training classes to

Company associates.
• Protecting the Environment – We achieved a 2% improvement in water
use efficiency in 2007 as compared to 2006.
• Supporting Communities – In 2007, The Coca-Cola Company and The
Coca-Cola Foundation made charitable
contributions of $99 million to community initiatives worldwide.
• Offering Safe, Quality Products – We launched more than 150 new low-
and no-calorie products in 2007,
increasing our low- and no-calorie beverage portfolio by 17%.

2007 Financial Highlights:

• Our portfolio includes 13 billion dollar brands.

• Unit case volume grew 6% to 22.7 billion unit cases worldwide (as
compared to 2006).
• Net operating revenues grew 20% to $28.9 billion (as compared to
2006).
• More than 70% of our net operating revenues and nearly 75% of our
unit case volume are generated outside of North
America.
• We invested $4.1 billion to acquire glaceau, maker of vitaminwater –
the fast-growing premier active-lifestyle beverage.

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۩ MILESTONE
Did you Know?

Around the World: The Coca-Cola Company Citizenship

Highlights
Vietnam: Launched the Coca-Cola Pushcart Project, which has provided
pushcarts, initial product and sales training for more than 4,000
disadvantaged Vietnamese women since 2002.

Kenya: Partnered with CARE to bring wells and water storage facilities
to 45 schools in western Kenya.

China: Helped build 57 schools and more than 100 libraries in

impoverished areas through a partnership with The China Youth
Development Foundation called Project Hope.

Italy: Created programs to encourage physical activity around the world,

such as “Schools in Motion” in Italy, in which more than 130,000
students from 1,200 schools have participated.

Uganda: Helped to build a state-of-the-art wastewater treatment plant

that reduces water usage and returns treated water to the community for
irrigation.

Equador: Partnered with the Galapagos Foundation to establish a

recycling education center. As part of the project, approximately 8,700 kg
of recycled goods are collected each month.

United States: The Coca-Cola Foundation awarded more than $26

million in higher-education scholarships to 3,250 students in the United
States since 1986.

Global: The company and foundation spent $76 million on community

projects in 2005

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Year 1894: A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain

beverage called Coca-Cola impressed the store's owner, Joseph A.
Biedenharn. He began bottling Coca-Cola to sell, using a common glass
bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler,
who owned the Company. Candler thanked him but took no action. One
of his nephews already had urged that Coca-Cola be bottled, but Candler
focused on fountain sales.

Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could

build a business around bottling Coca-Cola. In a meeting with Candler,
Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights
to bottle Coca-Cola across most of the United States for a sum of one
dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their
venture.

Years 1900-1909: Rapid growth

The three pioneer bottlers divided the country into territories and sold
bottling rights to local entrepreneurs. Their efforts were boosted by major
progress in bottling technology, which improved efficiency and product
quality. By 1909, nearly 400 Coca-Cola bottling plants were operating,
most of them family-owned businesses. Some were open only during hot-
weather months when demand was high.

Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily

confused with imitators. A group representing the Company and bottlers
asked glass manufacturers to offer ideas for a distinctive bottle. A design
from the Root Glass Company of Terre Haute, Indiana won enthusiastic
approval. The Contour Bottle became one of the few packages ever
granted trademark status by the U.S. Patent Office. Today, it is one of the
most recognized icons in the world.

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In the 1920s: Bottling overtakes fountain sales

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating
in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons
were a huge hit starting in 1923. A few years later, open-top metal coolers
became the forerunners of automated vending machines. By the end of
the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

In the 1920s and 1930s: International expansion

Led by Robert W. Woodruff, chief executive officer and chairman of the

Board, the Company began a major push to establish bottling operations
outside the U.S. Plants were opened in France, Guatemala, Honduras,
Mexico, Belgium, Italy and South Africa. By the time World War II
began, Coca-Cola was being bottled in 44 countries.
In the 1940s: Post-war growth

During the war, 64 bottling plants were set up around the world to supply
the troops. This followed an urgent request for bottling equipment and
materials from General Eisenhower's base in North Africa. Many of these
war-time plants were later converted to civilian use, permanently
enlarging the bottling system and accelerating the growth of the
Company's worldwide business.

In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and
type-the traditional 6.5 ounce Contour Bottle, or larger servings including
10, 12 and 26 ounce versions. Cans were also introduced, becoming
generally available in 1960.

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In the 1960s: Introduction of new brands

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr.
Pibb and Mello Yello were added in the 1970s. The 1980s brought diet
Coke and Cherry Coke, followed by PowerAde and Fruitopia in the
1990s. Today scores of other brands are offered to meet consumer
preferences in local markets around the world.

In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail customers of

The Coca-Cola Company merged and evolved into international mega
chains. Such customers required a new approach. In response, many
small and medium-size bottlers consolidated to better serve giant
international customers. The Company encouraged and invested in a
number of bottler consolidations to assure that its largest bottling partners
would have capacity to lead the system in working with global retailers.

In the 1990s: New and growing markets

Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the
Company invested heavily to build plants in Eastern Europe. As the
century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.

21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as consumers
seek brands that honor local identity and the distinctiveness of local
markets. As was true a century ago, strong locally based relationships
between Coca-Cola bottlers, customers and communities are the
foundation on which the entire business grows.

14
۩AWARDS

C
oca-Cola Wins
Golden
Peacock
Awards For
Environment (From left): Bill Schultz, CEO,
Management In India Hindustan Coca-Cola Beverages Pvt ltd,
Dr Madhav Mehra, President of the
In recognition of Coca-Cola’s World Council for Corporate
efforts in water management & Governance, UK, Baba Hardev Singhji
conservation, Maharaj, Head Nirankari Mission, Ola
World Environment Foundation Ullsten, former Prime Minister of
jointly with World Council for Sweden, Sudhanshu Pokhriyal, Director
CorporateGovernance Hyderabad & Coastal Andhra Pradesh
conferred Golden Peacock operations & Ameer Shahul, Region PA
award to Coca-Cola India’s & C Manager (south), recieving the
Atmakuru Unit in Golden Peacock trophy & the citation.
AndhraPradesh.

Bill Schultz, CEO, Hindustan Coca-Cola Beverages Pvt Ltd &

Sudhanshu Pokhriyal, Director Hyderabad & Coastal Andhra Pradesh
operations, received the prestigious award from Ola Ullsten, former
Prime Minister of Sweden at a function in the Himalayan foothills of
Palampur.

Judged by the distinguished panel headed by Justice P N Bhagwati,

former Chief Justice of India, Atmakuru unit was selected for its efforts in
reducing water consumption for beverage production by 20 per cent in
last two years. In addition, the sustained drive of the plant helped
increased ground water recharge inside the plant premises and the
surroundings by 25 per cent.

15
“As a Company, we remain committed to continually improving our
operations to optimize the use of resources for sustainable growth”, said
Bill Schultz while receiving the award.

Baba Hardev Singhji Maharaj, Head Nirankari Mission and Dr Madhav

Mehra, President of the World Council for Corporate Governance, UK
also praised the noteworthy efforts of Coca-Cola in India.

Atmakuru unit has also implemented a briquette-fired boiler replacing

petroleum based fuel with briquette made from agricultural waste, which
helps the Company in combating global warming by reducing carbon
footprint. “This award truly recognizes the importance of doing the right
thing. We will continue to strive to have a positive impact in the
communities we serve” concluded Bill Schultz.

In the past, the Atmakuru Unit has won laurels for its best environmental
practices. Some of them include - AP Pollution Control Board Award for
Cleaner Production for Excellence in Water conservation in 2003;
Appreciation from National Safety council, Best Employer Award from
AP Government 2005 and CII-Exim Bank recognition for Business
Excellence in 2005.

Coca-Cola India Wins Golden Peacock Global Award for Corporate

Social Responsibility

Coca-Cola India was awarded the prestigious 2008 Golden Peacock

Global Award for Corporate Social Responsibility on Feb. 15 during a
global conference in Vilamoura, Portugal. Dr. Ola Ullsten, former prime
minister of Sweden, presented the award to Deepak Jolly, Vice-President,
Public Affairs & Communication, Coca-Cola India, on behalf of the
Company.

16
The Golden Peacock Global CSR Award showcases the “human face of
business” by recognizing the continuing commitment of companies “to
behave ethically and contribute to economic development while
improving the quality of life of the workforce, their families and the local
community and society at large.”

A distinguished jury chaired by Dr. Ola Ullsten, former prime minister of

Sweden, selected this year’s Golden Peacock award winners.Presenting
the award to the Company, Dr. Ola Ullsten, said, “Golden Peacock
Awards have been instituted by World Council for Corporate Governance,
UK to create competitiveness in the area of Corporate Social
Responsibility. We are hopeful that Coca-Cola India’s effort in promoting
sustainable communities sets an example for other organizations to
follow.”

Her Excellency Ms. Nilima Mitra Ambassador of India in Portugal said

that she was very impressed with the manner in which Coca Cola is
fulfilling its CSR in India in water management and conservation
especially the intervention to ensure potable water to 1000 primary
schools in India.

Commenting on the Coca-Cola India winning the award, Atul Singh,

President & CEO, Coca-Cola India, said, “Coca-Cola India has always
placed high value on good citizenship and has undertaken several
initiatives for community development and inclusive growth. We are
gratified to receive this global award and are humbled at being
recognized for the little contributions that we have been able to make to
preserve and protect the environment and towards community
development. We are also establishing the Coca-Cola India Foundation
which will further strive to make a positive impact on local communities.
The Company remains committed to work with stakeholders and
communities across the country in its bid to contribute to mutual growth
and development.”

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The award recognizes Coca-Cola India’s water conservation/management
and community development initiatives. The Company has installed 320
Rain Water Harvesting (RWH) structures in 17 states and has restored
several traditional water bodies like the Sarai Bawari and Kale Hanuman
ki Bawari in Jaipur and check dams across the country.

Additionally, the Company recently set a target to reach a “net-zero”

balance with respect to groundwater usage by 2009 and launched the
“Elixir of life” project to provide drinking water to nearly 30,000 children
in 100 primary and panchayat schools in and around Chennai. The
Company plans to provide clean drinking water in 1,000 schools by 2010.

Coca-Cola India also promotes sustainable packaging through PET

recycling and has undertaken several projects in the areas of primary
health, primary education and infrastructure for local communities.The
Company has undertaken these Citizenship initiatives in partnership with
government, NGOs, educational institutions and local communities.

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 In 2006, the World Environment Foundation (WEF) honored Coca-Cola
India with the Golden Peacock Environment Management Special
Commendation Award for its world-class environment practices.

Dr. Olla Ullsten, former Local community using A photo of the drinking
Prime Minister of Sweden water from the water project in 100
and Chairman of the rejuvenated Sarai Bawari schools, launched by the
Awards jury presenting the at Amer, near Jaipur, Company in Chennai,
Golden Peacock Global Rajasthan which will benefit nearly
Award for Corporate 30,000 children on
Social Responsibility to completion
Deepak Jolly, Vice
President, Public Affairs
& Communication, Coca-
Cola India.

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Community Recognition To Coca-Cola India

Coca-Cola India was recently acknowledged for the various citizenship

initiatives in & around Kaladera in Jaipur, Rajasthan. Sunil Sharma,
who’s been associated with Coca-Cola India received the certificate of
appreciation on behalf of the company
from the Cultural Council of the
Kaladera community during the
celebration of Holi, the festival of
colors & joy.

"I’m deeply honored by the recognition

of the people of Kaladera" said Sunil
Sharma with his face painted in the
colors of festivity.
Certificate of appreciation given
"Coca-Cola India, has always placed
by Cultural Council, Kaladera
very high value on citizenship and has
Community in Rajasthan
taken various initiatives to conserve
water the area."

Coca-Cola India has worked with the government, local bodies & the
entire community of Kaladera in the area of water conservation. This
includes restoration of Sarai Bawri & Kale Hanuman ki Bawri - historical
step wells (over 400 years old), providing water to the people of the
community. The company has constructed over 140 recharge shafts in the
area. Rain water harvesting projects have been set up in various schools,
government bodies & the community areas.

20
No other company has ever come forward & worked towards the welfare
of the Kaladera Community except Coca-Cola. We appreciate the efforts
taken by Coca-Cola for the conservation of water in Kaladera." said
Bhura Mal Sharma, a 65 year old
farmer.

"The Rain water systems installed by

Coca-Cola ensure that the rain water
goes back into the ground which is very
beneficial to the farmers and if we get
good rains this year the results will
speak for themselves." Said Shri Sitaram Sanwaria, President,
Hanuman Sahaya 70-year-old farmer. Cultural council, Kaladera
Community and a local resident,
In addition, Coca-Cola India has presenting the certification of
undertaken an annual scholarship appreciation to Sunil Sharma, as
program for the students in the nearby a token of appreciation to Coca-
villages for the fifth consecutive year. Cola India for its community
Amongst various educational efforts during Holi celebrations,
initiatives, Coca-Cola also supports a festival of colors where people
’Aap Ki Beti’ (your daughter) program play with colors and have fun &
to provide education to a girl child. enjoyment. The festival aims at
bringing the society together &
"The roads, hospitals, medical camps, strengthen the social fabric of the
hand pumps etc. all indicate that Coca- country
Cola cares for Kaladera. We are
confident that the company will carry on need based developmental
programs in future also. said Shri Bhagwan Sahai ji, a local social worker
and leader. The presence of a company like Coca-Cola in the area is a
blessing for the local people of Kaladera." added Shiv Sahay, a 60 year
old farmer and a civil contractor.

"The certificate of appreciation that we to Mr Sunil Sharma is a token of

thanks for the relentless efforts of Coca-Cola for the welfare of the
community", said Sitaram Sanwaria, President, Cultural council,
Kaladera Community.

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"There is no better ways to be recognized for your dedicated community
efforts than by the people of the community themselves. Getting such a
recognition at Holi, which is a festival of colors and binds people together
shows the confidence that the community has in us", concluded Sunil
Sharma.

Kaladera Community Recognises Coca-Cola’s Community Initiatives

Coca-Cola India was recently acknowledged for the various citizenship
initiatives in & around Kaladera
in Jaipur, Rajasthan. Rakesh
Pathak, Unit HR Manager,
Kaladera plant and Sunil
Sharma, who’s been associated
with the company for a long
time were felecitated by the
villagers of Dabar Basti in
Kaladera.

As part of public-private Rakesh Pathak, Unit HR Manager,

partnership, Coca-Cola Kaladera plant & Sunil Sharma being
installed a new borewell felicitated by Chhittarmal Hatwal,
recently in the area to provide Sarpanch (head) of Kaladera at the
water in the houses of villagers. community event
Chhittarmal Hatwal, Sarpanch
(head) of Kaladera presented a Safa (head gear) to Rakesh Pathak & Sunil
Sharma as a mark of gratitude to the company.

"We are deeply honored by the recognition of the people of Kaladera"

said Rakesh Pathak. "Coca-Cola India, has always placed very high value
on citizenship and has taken various initiatives to conserve water the
area."

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Coca-Cola India has worked with the government, local bodies & the
entire community of Kaladera in the area of water conservation. This
includes restoration of Sarai Bawri & Kale Hanuman ki Bawri - historical
step wells (over 400 years old), providing water to the people of the
community. The company has constructed over 140 recharge shafts in the
area. Rain water harvesting projects have been set up in various schools,
government bodies & the community areas.

"No other company has ever come forward & worked towards the welfare
of the Kaladera Community except Coca-Cola. We appreciate the efforts
taken by Coca-Cola for the conservation of water in Kaladera."
Chhittarmal Hatwal, Sarpanch (head) of Kaladera.

In addition, Coca-Cola India has undertaken an annual scholarship

program for the students in the nearby villages for the fifth consecutive
year. Amongst various educational initiatives, Coca-Cola also supports
’Aap Ki Beti’ (your daughter) program to provide education to a girl
child.

’Water Efficient Unit’ Award to Coca-Cola India

Hindustan Coca-Cola Beverages Pvt Ltd, Varanasi unit was confered with
the National award for Excellence in Water Management for being the
’Water Efficient Unit’ by the Confederation of Indian Industry (CII).
There were in all 38 companies shortlisted by CII for this award. The
winner was chosen by nine member jury panel.

Venkata Ramana Rao - Minister of Infrastructure - Andhra Pradesh

presented the award to G S Raghu - Region Manager-Technical &
Quality (North) and Raman Goel, Factory Manager, Hindustan Coca-
Cola Beverages, Varanasi.

The various facets of water management highlighted at the CII

competition were water conservation efforts for reduction in specific
water consumption, reduction in waste water discharge, road map to
achieve zero waste water discharge, sustainability projects, rain water
harvesting and community involvement in water conservation.

23
National Award for Excellence in(from left) - Venkata Ramana
Water Management for ’WaterRao - Minister of Infrastructure-
Efficient Unit’ Andhra Pradesh presenting the
award to G S Raghu - Region
Manager-Technical & Quality
(North) and Raman Goel,
Factory Manager, Hindustan
Coca-Cola Beverages, Varanasi

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Coca-Cola wins Bhagidari Award- Fourth time in a row
Coca-Cola India won the Delhi Government's Bhagidari Award for the
4th consecutive year for its efforts in Water Conservation and Community
Development. The award was presented on the second day of the two day
Bhagidari Utsav at Pragati Maidan, New Delhi on February 3, 2007 by
the Hon'ble Chief Minister of Delhi, Smt. Ms. Sheila Dikshit. We took
this opportunity to also present the Water Calendar 2007 to the Hon'ble
CM.

The Bhagidari Utsav is an annual event to celebrate the success of

'Bhagidari' - A public-private-community partnership program launched
by the Delhi government a few years ago.

Among the highlights of the Utsav was an exhibition cum display by

some of the partners of the Delhi government, where each partner
showcased its initiatives to make Delhi a 'better' place. In recognition of
Coca-Cola's efforts in Water Conservation and PET Recycling, we were
given two stalls to outline our initiatives in these areas. Ms. Dikshit was
one of the first to visit our PET Recycling stall and after being briefed on
our PET Recycling program, she urged the Company to spread the
awareness on PET Recycling not just amongst the visitors to the
Bhagidari Utsav but also among people at large.

25
Our Water Conservation stall was visited both by the Hon'ble Chief
Minister Ms. Sheila Dikshit as well as by the Hon'ble Mr. A. K. Walia,
Minister for Finance, Planning, P.W.D & Urban Development, Delhi
Government, who were briefed about the various programs undertaken by
the Company to spread awareness and to conserve water. The dignitaries
were very appreciative of our efforts. We had showcased a device called
'Drip Gauge' for the first time in the country at the stall. Drip Gauge is a
simple but effective tool to sensitize people to save water. A 3-D Rain
Water Harvesting (RWH) model demonstrating the utility, functioning
and commissioning of Rain Water Harvesting projects at individual
households & residential colonies was also on display. In addition, people
were apprised of simple methods to Reduce, Reuse, Recycle and
Recharge water in their daily lives.

Our stalls evoked tremendous response from all stakeholders and nearly
3000 people visited our stalls during the event. Of these, nearly 2500
participated in the two quiz contests that we ran at the stalls. Several
Resident Welfare Associations and NGOs also approached us seeking our
guidance and help for RWH and PET Recycling programs in their
colonies.

26
World Environment Foundation Awards - 2005 Golden Peacock

Environment Management Award to Kaladera unit

The World Environment Foundation (WEF) awarded the prestigious

Golden Peacock Environment Management Award 2005 (GPEMA) to the
Coca-Cola bottling plant at Kaladera, near Jaipur, in recognition of its
world-class environment practices. Coca-Cola Indias ultra-modern ISO
14001 certified bottling plant in the State won this top award in the
medium scale Food & Beverage category from amongst more than 17
entries. The Kaladera unit is the fourth plant to get this distinction in the
Coca-Cola India after Baddi (Himachal Pradesh), Ameenpur (Andhra
Pradesh) and Dasna (Uttar Pradesh).

The Award was presented to the plant team at a glittering function at

Palampur by Dr. Ola Ullsten, former Prime Minister of Sweden.

27
The Kaladera unit qualified on stringent selection criteria of an eminent
international and national jury of experts after a thorough evaluation of
the plants compliance with a WEF prescribed program assessment format
covering various issues related to environment management. The
assessment covered a period of one year from 1st April 2004 to 31st
March 2005 and several environmental performance indicators were
monitored and evaluated according to WEFs stringent parameters, for
grant of this award. Some of the environmental performance monitors
are: energy use, water use, wastewater discharge, compliance with
Government regulations and positive impact on local community.

The Golden Peacock Environment Management Award

The GPEMA is designed to encourage and recognize effective
implementation of environmental management system and this
achievement has been made possible by the plants adherence to Coca-
Colas total quality program called The Coca-Cola Quality system
(TCCQS). TCCQS is all encompassing management system (Total
Quality) covering environment management and other business aspects
such as safety and loss Prevention (SLP), product quality, packaging
quality, process capability improvement and customer satisfaction.

GPEMA has been instituted by the Institute of Directors in association

with World Environment Foundation (WEF) and is designed to encourage
and recognize effective implementation of environment management
system. The awards are given separately for manufacturing and service
organizations, and are assessed under the following categories, viz, Large
Enterprises (251 and above employees), Medium Enterprises (51 to 250
employees), and Small Enterprises (upto 50 employees).

WEF is a non-profit NGO, which strives to foster partnerships and

improve links between industry and environmentalists for developing
innovative strategies to minimize the environmental degradation.

28
۩ ISO CERTIFATE

All India Division COBO’s are now ISO 14001 certified

A ll 25 of the India Division’s Company-owned bottling plants

have gained the international standard ISO 14001 Environment
Management System certificate.

The ISO 14001 certificate is the internationally recognized standard of

Environmental Management.

A company must demonstrate management commitment, the total

involvement of all employees and a compliance with applicable
regulatory and internal company standards.

The Company started its compliance effort in February, 2002 and the
Bidadi plant near Bangalore in the southern State of Karnataka was the
first plant to receive this prestigious the tough evaluation criteria and
standards of the ISO auditors.

After only 15 months, when certifying agency Det Norske Veritas

completed its audit and granted the ISO certification to the Patna plant in
eastern State of Bihar, every plant in the Company owned bottling system
held the coveted certificate.

"We have been able to achieve this due the unwavering commitment and
belief demonstrated by all our associates in protecting, preserving and
enhancing the environment," says India Division President Sanjiv Gupta.

The India Division Environment Resource Management team guided the

plant teams in implementing systems that helped fulfill the requirements
of the ISO Certifying system. Strict division compliance with the eKO
system ensured that the bottling plants were ready to meet the tough
evaluation criteria and standards of the ISO auditors.

29
The environment management system has resulted in other significant
business benefits, including conservation of resources, increased
productivity and reduction of overall wastages.

The Division is now working hard to extend the ISO footprint across the
entire franchisee owned bottling system as well. accreditation in January
2003.

Strict division compliance with the EKO system ensured that the bottling
plants were ready to meet.

30
۩ PRESIDENT TALK

President's profile

Atul Singh

P resident & Chief Executive Officer, Coca-Cola India

Atul Singh is the President & CEO of Coca-Cola India, a responsibility

that he took over on September 1, 2005 after working as the President of
East, Central & South (ECS) China Division of Coca-Cola. Atul is
responsible for Coca-Cola″s operations in India, Sri Lanka, Bangladesh,
Bhutan, Nepal and the Maldives.

Under his stewardship, Coca-Cola′s business in India has undergone

major transformation and reported nine consecutive quarters of growth.
Atul joined The Coca-Cola Company in 1998 as Vice President,
Operations of Coca-Cola, India Division. He led the Franchise Operations
and Key Accounts group of the India Division from 1998 to 2001.

31
 Atul then moved to China for his stint as Region Manager of East China,
China Division and later became the President of the ECS, China
Division. The Division consisted of Shanghai, the Swire Territories of
China, Hong Kong and Taiwan. Additionally, Atul was also responsible
for the global and strategic Key Customer Relationships for Greater
China and was a member of the Customer Leadership Council. Prior to
this, Atul served as Deputy Division President and headed the Operations
group of China Division. Under his leadership, mainland China
operations were among the fastest growing Coca-Cola businesses.
Prior to joining Coca-Cola, Atul worked with The Colgate Palmolive
Company for 10 years and held several roles including Country General
Manager, Nigeria (1995-1998), Finance Director and then Country
General Manager, Romania (1992-1995) and Finance Manager, Body
Care Division, USA (1990-1992). Prior to Colgate, Atul worked as an
Auditor with Price Waterhouse in New York.

Atul is currently the Chairman of American Chamber of Commerce

(AMCHAM) in India, Chairman of the Environment Committee of
Confederation of Indian Industry (CII) and the Chairman of the Sports
Committee of Federation of Indian Chambers of Commerce and Industry
(FICCI). Atul is also a member of the Young Presidents′ Organization, a
global body dedicated to creating ″Better Leaders through Education and
Idea Exchange′.

Atul is a Commerce Graduate from St. Xavier′s College, Kolkata and

holds an MBA degree from Texas Christian University, USA. He has
traveled extensively through the globe and has had working stints in Asia,
Africa, Europe and North America.

32
 CHAPTER – II

PRODUCTION & PRODUCTS

۩ PRODUCTION PROCESS
۩ LIST OF PRODUCTS
۩ PRODUCT DISCRIPTION

33
۩ PRODUCTION PROCESS

MANUFACTURING PROCESS

34
T he manufacturing of the products of Coca-Cola involves the
following steps:

• Water is received from the River Cauvery and it passes through the
water treatment plant, further passing through the sand filter and the
activated carbon filter, so as to attain pure cleansed water.

• In the syrup room, the concentrate received from another bottling

plant situated at Pune, is blended with the sugar syrup

• Once both the water and the final syrup are ready, they are both mixed
together and sent to the carbonator section where Carbon Dioxide is
added to the mixture to form the final product.

• On the other hand, simultaneously, the returnable glass bottles are

depalletized, inspected and washed for the purpose of filling in the
final product in it. This step does not take place in the PET bottle line
as the bottles once used are disposed.

• The product is finally filled in the bottles, crowned (in case of RGB)/
capped (in case of PET bottles), labeled and cased in order to be sent
into the warehouse for distribution.

35
۩ LIST OF PRODUCTS

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۩ PRODUCT DISCRIPTION
Brand Name: Coca-Cola

C
oca-Cola: Coca-Cola is the most popular and biggest-selling
soft drink in history, as well as the best-known product in the
world. Created in Atlanta, Georgia, by Dr. John S. Pemberton,
Coca-Cola was first offered as a fountain beverage by mixing
Coca-Cola syrup with carbonated water. Coca-Cola was introduced in
1886, patented in 1887, registered as a trademark in 1893 and by 1895 it
was being sold in every state and territory in the United States. In 1899,
The Coca-Cola Company began franchised bottling operations in the
United States. Coca-Cola might owe its origins to the United States, but
its popularity has made it truly universal. Today, you can find Coca-Cola
in virtually every part of the world.

Available in the following flavors: Cola, Cola Green Tea, Cola Lemon,
Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry.

Brand Name: Fanta

59
F
anta: Available in Europe since the 1940s, Fanta was
introduced in the United States in 1960. Consumers around the
world, particularly teens, fondly associate Fanta with happiness
and special times with friends and family. This positive
imagery is driven by the brand's fun, playful personality, which goes hand
in hand with its bright color, bold fruit taste and tingly carbonation.

Beginning in 2009, the U.S. markets will see Fanta Regular Orange,
Fanta Zero Orange, Fanta Apple and Fanta Grapefruit in 100% natural
flavors.

Available in the following flavors: Aloe Vera Muscat, Apple, Apple

Grape, Apple Kiwi, Apple Peach, Apple Vanilla, Apricot, Banana, Banana
Fermented Milk, Berry, Berry Blackcurrant, Berry Cherry, Berry Orange,
Birch Beer, Bitter Herbal, Bitter Orange, Bitter Water, Blackcurrant,
Blackcurrant Blueberry Raspberry, Blackcurrant Lemon, Blueberry,
Blueberry Salacider, Bubble Gum, Cherry, Citron, Citrus Blend, Club
Soda, Coconut Pineapple, Cranberry, Cranberry White Grape, Floral
Lemon, Fruit Punch, Fruit Punch Orange.

Brand Name: Kinley

60
K inley: Kinley is a carbonated water that comes in wide array of
variants such as tonic, bitter lemon, club soda and a myriad of
fruit flavors.

Available in the following flavors: Apple Peach, Bitter Grapefruit,

Bitter Herbal, Bitter Lemon, Bitter Water, Blueberry Pomegranate, Club
Soda, Ginger Ale, Lemon and Raspberry.

Available in the following locations: Austria, Bulgaria, Czech Republic,

Denmark, El Salvador, Germany, Hungary, India, Israel, Italy,
Netherlands, Poland, Slovakia, Sweden, Switzerland, United States, West
Bank-Gaza and Zambia.

Brand Name: Limca

61
L
imca: This thirst-quenching beverage features a fresh, light
lemon-lime taste and fun-loving attitude. It's a home-grown,
national treasure in India, where it was acquired by The Coca-
Cola Company in 1993. Limca continues to build a loyal
following among young adults who love the lighthearted way it
complements the best moments of their lives.

Available in the following flavor: Lemon Lime.

Available in the following locations: India, Nigeria, United Arab

Emirates and Zambia.

Brand Name: Sprite

62
 Introduced in 1961, Sprite is the world's leading lemon-lime flavored
soft drink. Sprite is sold in more than 190 countries and ranks as the No.
4 soft drink worldwide, with a strong appeal to young people. Millions of
people enjoy Sprite because of its crisp, clean taste that really quenches
your thirst. But Sprite also has an honest, straightforward attitude that sets
it apart from other soft drinks. Sprite encourages you to be true to who
you are and to obey your thirst.

Available in the following flavors: Bitter Lemon Citrus Grapefruit,

Citrus, Lemon and Lemon Lime.

Brand Name: Thums-up

63
T
hums-up is also considered to be a cola drink. It is hard in
comparison to coke. It is preferred by all section of consumers
but especially to teen-agers. It is a big source of company to
cash its publicity.

Brand Name: Kinley water

64
K inley water is a fresh and mineral water and market competitor of
Bisleri and Aquafina.

Brand Name: Minute maid

65
I
n Minute maid pupply orange cold drink no gas only based on
orange juice. It is a non-aerated soft drink and market competitor of
Tropicana Twister.

66
 CHAPTER - III

MARKETING RESEARCH

۩ SITUATION ANALYSIS
۩ DISTRIBUTION CHANNEL
۩ SALES PROMOTION
۩ MARKETING MIX

67
۩ SITUATION ANALYSIS

Market Analysis:

T
he market analysis investigates both the internal and external
business environment. It is vital that Coca cola carefully
monitor both the internal and external aspects regarding it’s
business as both the internal and external environment and
their respective influences will be decisive traits in relation to Coke’s
success and survival in the soft drink industry.

Internal Business Environment

The internal business environment and its influence is that which is to

some extent within the business’s control. The main attributes in the
internal environment include efficiency in the production process,
through management skills and effective communication channels. To
effectively control and monitor the internal business environment, Coke
must conduct continual appraisals of the business’s operations and readily
act upon any factors, which cause inefficiencies in any phase of the
production and consumer process.

External Business Environment

The External business environment and its influences are usually

powerful forces that can affect a whole industry and, in fact, a whole
economy. Changes in the external environment will create opportunities
or threats in the market place Coca cola must be aware off. Fluctuations
in the economy, changing customer attitudes and values, and
demographic patterns heavily influence the success of Coka Cola’s
products on the market and the reception they receive from the
consumers.

68
Product Life cycle:

When referring to each and every product or service ever placed before
the consumer i.e. in the long term all the existing products and services
are dead. For e.g.:- Replacement of Ford Cortina ( a highly successful
car) by Ford Sierra, the replacement of sierra by the Ford Mondeo and the
replacement of the old Mondeo by the new Mondeo in 2001. So every
product is born, grows, matures and dies. So in the commercial market
place products and services are created, launched and withdrawn in a
process known as Product Life Cycle.

To be able to market its product properly, a business must be aware of the

product life cycle of its product. The standard product life cycle tends to
have five phases: Development, Introduction, Growth, Maturity and
Decline. Coca-Cola is currently in the maturity stage, which is evidenced
primarily by the fact that they have a large, loyal group of stable
customers.

Furthermore, cost management, product differentiation and marketing

have become more important as growth slows and market share becomes
the key determinant of profitability. In foreign markets the product life
cycle is in more of a growth trend Coke's advantage in this area is mainly
due to its establishment strong branding and it is now able to use this area
of stable profitability to subsidize the domestic Cola Wars.
Insert the picture of the product lifecycle

69
۩ DISTRIBUTION CHANNEL
BOTTLER’S AGREEMENTS AND DISTRIBUTION
AGREEMENTS

S
eparate contracts (‘‘Bottler’s Agreements’’) exist between our
Company and each of its bottlers regarding the manufacture and
sale of soft drinks. Subject to specified terms and conditions and
certain variations, the Bottler’s Agreements generally authorize
the bottler to prepare particular designated Company Trademark
Beverages, to package the same in particular authorized containers, and to
distribute and sell the same in (but generally only in) an identified
territory. The bottler is obligated to purchase its entire requirement of
concentrates or syrups for the designated Company Trademark Beverages
from the Company or Company authorized suppliers. We typically agree
to refrain from selling or distributing or from authorizing third parties to
sell or distribute the designated Company Trademark Beverages
throughout the identified territory in the particular authorized containers;
however, we typically reserve for ourselves or our designee the right (1)
to prepare and package such beverages in such containers in the territory
for sale outside the territory and (2) to prepare, package, distribute and
sell such beverages in the territory in any other manner or form.
Territorial restrictions on bottlers vary in some cases in accordance with
local law. The Bottler’s Agreements between us and our authorized
bottlers in the United States differ in certain respects from those in the
other countries in which Company Trademark Beverages are sold. As
further discussed below, the principal differences involve the duration of
the agreements; the inclusion or exclusion of canned beverage production
rights; the inclusion or exclusion of authorizations to manufacture and
distribute fountain syrups; in some cases, the degree of flexibility on the
part of the Company to determine the pricing of syrups and concentrates;
and the extent, if any, of the Company’s obligation to provide marketing
support.

70
OUTSIDE THE UNITED STATES.

The Bottler’s Agreements between us and our authorized bottlers outside

the United States generally are of stated duration; subject some cases to
possible extensions or renewals of the term of the contract. Generally,
these contracts are subject to termination by the Company following the
occurrence of certain designated events. These events include defined
events of default and certain changes in ownership or control of the
bottler.

In certain parts of the world outside the United States, we have not
granted comprehensive beverage production rights to the bottlers. In such
instances, we or our designees typically sell canned (or in some cases
bottled) Company Trademark Beverages to the bottlers for sale and
distribution throughout the designated territory under distribution
agreements, often on a non-exclusive basis. A majority of the Bottler’s
Agreements in force between us and bottlers outside the United States
authorize the bottler to manufacture and distribute fountain syrups,
usually on a non-exclusive basis. Our Company generally has complete
flexibility to determine the price and other terms of sale of the
concentrates and syrups we sell to bottlers outside the United States. In
some instances, however, we have agreed or may in the future agree with
the bottler with respect to concentrate pricing on a prospective basis for
specified time periods. Outside the Unite States, in most cases we have
no obligation to provide marketing support to the bottlers. Nevertheless,
we may, in our discretion, contribute towards bottler expenditures for
advertising and marketing. We may also elect to undertake independent or
cooperative advertising and marketing activities.

71
WITHIN THE UNITED STATES.

In the United States, with certain very limited exceptions, the Bottler’s
Agreements for Coca-Cola and other cola-flavored beverages have no
stated expiration date. Our standard contracts for other soft drink flavors
and for noncarbonated beverages are of stated duration, subject to bottler
renewal rights. The Bottler’s Agreements in the United States are subject
to termination by the Company for nonperformance or upon the
occurrence of certain defined events of default which may vary from
contract to contract. The so-called ‘‘1987 Contract,’’ described below, is
terminable by the Company upon the occurrence of certain events
including:
• The bottler’s insolvency, dissolution, receivership or the like;
• Any disposition by the bottler or any of its subsidiaries of any voting
securities of any bottler subsidiary
Without the consent of the Company;
• Any material breach of any obligation of the bottler under the 1987
Contract; or
• Except in the case of certain bottlers, if a person or affiliated group
acquires or obtains any right to acquire beneficial ownership of more than
10% of any class or series of voting securities of the bottler without
authorization by the Company.

Under the terms of the Bottler’s Agreements, bottlers in the United States
are authorized to manufacture and distribute Company Trademark
Beverages in bottles and cans. However, these bottlers generally are not
authorized to manufacture fountain syrups. Rather, as described above,
our Company manufactures and sells fountain syrups to authorized
fountain wholesalers (including certain authorized bottlers) and some
fountain retailers. These wholesalers in turn sell the syrups or deliver
them on our behalf to restaurants and other retailers.

72
In the United States, the form of Bottler’s Agreement for cola-flavored
soft drinks that covers the largest amount of U.S. volume (the ‘‘1987
Contract’’) gives us complete flexibility to determine the price and other
terms of sale of soft drink concentrates and syrups for cola-flavored
Company Trademark Beverages (‘‘Coca-Cola Trademark Beverages’’)
and other Company Trademark Beverages. In some instances, we have
agreed or may in the future agree with the bottler with respect to
concentrate pricing on a prospective basis for specified time periods.
Bottlers operating under the 1987 Contract accounted for approximately
88% of our Company’s total United States gallon sales for bottled and
canned beverages, excluding direct sales by the Company of juice and
juice-drink products and other finished beverages (‘‘U.S. bottle/can
gallon sales’’) in 2003.

Certain other forms of U.S. Bottler’s Agreements, entered into prior to

1987, provide for soft drink concentrates or syrups for certain Coca-Cola
Trademark Beverages to be priced pursuant to a stated formula. The
oldest such form of contract, applicable to bottlers accounting for
approximately 1% of U.S. bottle/can gallon sales in 2003, provides for a
fixed price for Coca-Cola syrup used in bottles and cans. This price is
subject to quarterly adjustments to reflect changes in the quoted price of
sugar. Bottlers accounting for the remaining approximately 11% of U.S.
bottle/can gallon sales in 2003 have contracts for certain Coca-Cola
Trademark Beverages with pricing formulas generally providing for a
baseline price. This baseline price may be adjusted periodically by the
Company, up to a maximum indexed ceiling price, and is adjusted
quarterly based upon changes in certain sugar or sweetener prices, as
applicable.

73
LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

DISTRIBUTION NETWORK

HCCBPL has a wide and well managed network of salesmen appointed

for taking up the responsibility of distribution of products to diverse parts
of the cities. The distribution channels are constructed in such a way that
the demand of customers is fulfilled at the right place and the right time
when it is needed by them.

A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution

Warehouse --- Retail Stock --- Retail Shelf --- Consumer

74
The customers of the Company are divided into different categories and
different routes, and every salesman is assigned to one particular route,
which is to be followed by him on a daily basis. A detailed and well
organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency
thereby leading to higher profits to the firm.

DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products

are as follows:

• Key Accounts: The customers in this category collectively contribute

a large chunk of the total sales of the Company. It basically consists of
organizations that buy large quantities of a product in one single
transaction. The Company provides goods to these customers on
credit, payments being made by them after a certain period of time i.e.
either a month of half a month.
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

• Future Consumption: This route consists of outlets of Coca-Cola

products, wherein a considerable amount of stock is kept in order to
use for future consumption. The stock does not exhaust within a day
or two, instead as and when required stocks are stacked up by them so
as to avoid shortage or non-availability of the product.
Examples: Departmental stores, Super markets etc.

• Immediate Consumption: The outlets in this route are those which

require stocks on a daily basis. The stocks of products in these outlets
are not stored for future use instead, are exhausted on the same day
and might run a little into the next day i.e. the products are consumed
at a fast pace.
Examples: Small sized bars and restaurants, educational institutions
etc.

75
• General: Under this route, all the outlets that come in a particular area
or an area along with its neighboring areas are catered to. The
consumption period is not taken into consideration in this particular
route.

DISTRIBUTION SYSTEM

• Direct distribution: In direct distribution, the bottling unit or the

bottler partner has direct control over the activities of sales, delivery,
and merchandising and local account management at the store level.

• Indirect distribution: In indirect distribution, an organization which

is not part of the Coca-Cola system has control on one or more of the
distribution elements (Sales, delivery, merchandising and local
account management)

• Merchandising: Merchandising means communication with the

consumer at the point of purchase to convey product benefit, value
and Quality. Sales people and delivery personnel both have this
responsibility. In certain locations special teams who go into business
locations to specifically merchandise our products.

DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

The Distribution process mainly consists of three departments:

• Distribution Department: It appoints distributors and establishes a

distribution network, processes approved sale orders and prepares
invoices, arranges logistics and ship products, co-ordinates with
distributors for collections and monitors distribution stocks and their
set-up.

• Finance Department: It checks credit limits and approves sales

orders in compliance with the credit policy followed by the firm,
records collections from distributors, periodically reconciles
outstanding balances from distributors, obtains balance confirmation
from distributors and follows up outstanding balances.

76
• Shipping or Warehousing Department: It dispatches goods as per
approved by order, ensures that stocks are dispatched on a FIFO basis,
ensures physical control over load out area and updates warehouse
stock records in a timely manner.

77
۩ SALES PROMOTION

78
79
80
 Coca-Cola Displays Cherry Coke

C
oca Cola North America
recently use this case stacker
display to highlight cans of
both Cherry Coke and
Cherry Coke Zero in grocery stores.

The combination of the big can images

with the giant cherries conveyed the big
cherry taste of the products.

The cans of Cherry Coke and Cherry Coke Zero were well organized on
both sides of the display.

A Cherry Coke Spectacular display used in conjunction with this program

featured a spinning can to draw attention to the display.

This display was created for Coca Cola North America by Ellie, Inc.,
(www.ellieinc.net), an O’Fallon, MO-based promotion agency and point-
of-purchase display firm.

In today’s competitive environment, having the right product at the right

place in the right place at the right time may still not be enough to be
successful. Effective communication with the target market is essential
for the success of the product and business. Promotion is the activity of
the marketing mix designed to inform the marketplace about who you

81
are, how good your product is and where they can buy it. Promotion is
also used to persuade the customers to try a new product, or buy more of
an old product.

The promotional mix is the combination of personal selling, advertising,

sales promotion and public relations that it uses in its marketing plan.
Above the line promotions refers to mainstream media: Advertising
through common media such as television, radio, transport, and
billboards and in newspapers and magazines. Because most of the target
is most likely to be exposed to media such as television, radio and
magazines, Coca Cola has used this as the main form of promotion for
extensive range of products. Although advertising is usually very
expensive, it is the most effective way of reminding and exposing
potential customers to Coca Cola Products. Coca Cola also utilizes below
the line promotions such as contests, coupons, and free samples. These
activities are an effective way of getting people to give your product a go.

Every age of group like all the products of coca-cola. Now a days it
become a household necessary item. In field of marketing many kind of
surveys are conducted by Coca-Cola team time to time. This is end & last
feedback for any kind of organization. By the specific survey, which was
conducted by Coca- Cola organization want to know about the right
picture.

This work study provides extensive information about the position of

company’s brand in rural area.

VARIABLES Marketing variables Display items

• Visicoolers Sales Promotion variables

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• Discount for retailers.
• Scheme for retailers.

To know effectiveness of the marketing strategy & sales promotions in

market.

Ensuring the visibility of the product.

• Ensuring the availability of products in outlets.

• Analyzing the effect of scheme.
• Analyzing the effect of discounts.

• Evaluating the competitor’s strength & weakness in rural market.

• Retailer’s expectation from company.

• Focus on villages’.

Focus on availability of products in market. Coca-Cola works on dikega

to bikega philosophy. This is the main formula of the marketing straregy
of each company. So availability of product in the market is clear. For this
reason market developer daily come in market to check their product
availability. Focus on availability of products in outlets. There is big
difference between the availability of products in market & outlets. Coca-
Cola want that their product displayed in each outlet in market so it is
important that the product first available in market after than it put on
outlets. (Khatushyamji market).

Focus on visibility of coke product in outlet The aim of Coca-Cola is that

its product should be visible for the customers so company gives to
retailers racks so many display items. Now days the company is giving
visicoolers to retailers for visible their chilled product in market for more
sales. More focus in rural area. “The rural market is a significant part of

83
our sales promotional discount scheme which is enabling us retailer’s link
with our product”. Herminder Singh chabada (STL) Coca-Cola
According to company sources main focus now on rural market. In 2000
the Coca-Cola India spokes women Nantoo Banerjee said that.

“The real market in India is the rural market. If u can crack it, there is
tremendous potential.” CCI begin focus on rural areas after 2000 in order
to increase volumes. This decision is giving a huge size & potential
market to company. It is clear that CCI would have shifted its focus to
rural market. “THANDA” GOSE RURAL In early 2002 CCI launched a
new advertising campaign for attract more rural consumers. The aids with
India leading bollywood star Amir Khan. With movie of lagan. (Thanda
Matlab Coca- The tag line of aid is Cola)

Regular market vigilance by market developer To know the position of

Coke’s product in the market coca- cola appoint some executive those go
in market & check availability, visibility of product, take care companies
assets, check visicoolers and talk to shopkeeper & take feedback about
their product. Distribution of product according locality. Coca-cola
Company distributes their schemes according to area. Area or place
where soft drinks sold in a large manner, on those place company gives
good schemes to shopkeeper and retailer. Place like railway station bus
stand are consider in this category and place which have low selling
where company gives small schemes to the shopkeeper. Extra focus on
monopoly outlets

Outlets which only sales coca-cola product and gives good sale to
company, Are consider in this category company gives extra schemes,
discount and other gift to these shops and tries to keep them happy and
make long relationship. Problem of these kinds of outlets resolve as soon
as possible aggressive advertisement.

Coca-cola use the concept of aggressive advertises for sales promotion.

Company introduces different schemes and advertises them with
electronic and print media. These advertisements build Brand image and
establish awareness. Brand ambassador play an important role. Brand
ambassador encourage the today youth to trust their instincts, influence

84
them. Successful advertisement campaigns like “taaza mango , maaza
mango” and “ botal mein aam, maaza hain naam”. Halp lot to make
market image of maaza. Coca-cola advertising cam gains Jo Chaho Ho
Jaye. & Life Ho To Asi were very popular & had entered in youth
vocabulary. Matlab In 2002 company launched the campaign “Thanda
Coca-Cola” which is sky rocketed the brand to make.Coca- Cola lunched
so many advertising for rural market capture Amir soniyoThanda piyo
Khan’s aid “Oye Social festivals in rural areas. 27

Coca-Cola Company time to time introduced rural social festival. In 2007

company launched JALASA programmed in so many rural areas like
RINGUS, RENWAL, CHOMU, PHULERA, for take attention of the
consumers. Focus on villages’ now coca-cola considers more on villages
after semi urban areas. Company making now days strategies for villages
because they know India leave in Villages.

Outlet at petrol pumps- Convenience outlets selling top up items, may be

open till late at nights or 24 hrs. Travel & convenience kiosks- Permanent
kiosks within the airports/ railways/ bus stand premises (inside or
outside) selling only beverages or a food & beverage kiosks.

SALES PROMOTION tools are used by most organization including

manufactures, distributors, traders, non profit instructions & retailers etc.
Today many customers packaged goods company’s sales promotion
accounts for 75% or more of all marketing expenditure. Sales promotion

85
12% annually, compared with advertising increase of only 7.7%. SALES
PROMOTION IS BASICALLY in 3 FORMS. Consumer promotion:-
Targeted final buyers. Trade promotion: - Targeted retailers &
wholesalers.

Sales force Promotion: - Targeted the numbers of sales force COCA-

COLA USING WHY SALES PROMOTION (Objective of sales
promotion) Sales promotion is main tool for increasing sales so flowing
causes for adopting sales promotion.

• To stimulate the demand by popularizing product

• To face competition effectively.
• To keep the memory of products in mind of consumers.
• To supplement the personal selling & advertising.
• To establish the large market segment.
• To capture more market share from competitor.
• To maintain the market.
• To attract distributors towards our brands.
• To attract more consumers by gave them free gifts on products.
• To include middle man wholesaler & retailers to purchase goods in
large quantity by offer them more facilities on higher trade more cash
discount, bonus etc.
• To arrest seasonal decline in sales.
• To assist sales man in increasing sales, achieving sales target &
salesman’s activities for problem sales.
• To help of new products this introduced in market recently.
• To introduce such sales promotion methods as to adopt aggressive
selling and their by increase sales.
• To stimulate market research.

METHODS OF SALES PROMOTION

86
Various types of sales promotion methods are being used in organization
in Coca-Cola these following methods are using in sales promotion
technique. Consumer sales promotion methods. Traders, wholesalers,
retailer’s sales promotion methods. Sales force promotion methods.
Consumer sales promotion methods:- Consumer sales promotion methods
are those methods which are directed at consumers to induce them to buy
the company’s product the are some consumer sales promotion devices.

• Free trails. • Samples • Premium • Bonus stamps • Cash refund offer

Trade sales promotion method: Trade sales promotion is an incentive

given to middle man to buy Goods in large quaint form the producer or
manufacturer. The main sales promotion methods are such as: • Discount
• Display and advertising allowance • Buy-back allowances • Store
demonstration free goods • free tours etc. 3.Sales promotion method:
Sales promotion method is those methods which intended to motivate the
sales force to increase sales. These methods 40 support a sales man to
perform his job more effectively and sincerely. • Bonus to sales force
Sales force contests • Sales meeting convention and conferences
Promotion strategies A promotion strategy is an important element of
market strategy. A key ingredient in marketing campaigns consists of a
diverse collection of incentive tools, mostly short term, designed to
stimulate quicker or greater purchase of particular products or services by
consumers or trade. Co-operate objective Marketing objective Marketing
Strategy Promotion Production Advertising Pricing Sales promotion
Distribution Personal selling Publicity

87
۩ MARKETING MIX

T
he marketing mix is probably the most crucial stage of the
marketing planning process. This is where the marketing
tactics for each product are determined. The marketing mix
refers to the combination of the four factors (price, promotion,
product, and place) that make up the core of a business’s marketing
strategy. In this step of the marketing planning process, marketing mix
must be designed to satisfy the wants of target markets and achieve the
marketing objectives. The most successful businesses have continually
monitored and changed their marketing mix due to respective internal and
external factors and have monitored the external business environment in
order to maximize their marketing mix components.

Factors Influencing Consumer Choice

When making decisions on products a business must look at factors that

influence consumer choice such as psychological factors, Sociocultural
factors, Economic factors and Government Factors.

Psychological Factors: such as motivation, perception, lifestyle,

personality and self concept, learning, and attitudes influence the
consumer’s behavior towards a product and Coca Cola has addressed this
issue by introducing Diet Coke to satisfy different lifestyles.
Sociocultural factors: such as culture, subculture, socio-economic status,
family and reference groups influence the consumer’s behavior towards a
product.

Economic factors: such as Disposable income and discretionary income.

Coca Cola has addressed this side of the influence by maintaining a low
price on the price of its products.

Government Factors: such as new regulations, inflation, interest rates all

influence consumer spending and choice.

88
Product:

Many Products are physical objects that you can own and take home. But
the word product means much more than just physical goods. In
marketing, product also refers to services, such as holidays or a movie,
where you enjoy the benefits without owning the result of the service.
Businesses must think about products on three different levels, which are
the core product, the actual product and the augmented product. The core
product is what the consumer is actually buying and the benefits it gives.
Coca Cola customers are buying a wide range of soft drinks. The actual
product is the parts and features, which deliver the core product.
Consumers will buy the coke product because of the high standards and
high quality of the Coca Cola products. The augmented product is the
extra consumer benefits and services provided to customers. Since soft
drinks are a consumable good, the augmented level is very limited. But
Coca Cola do offer a help line and complaint phone service for customers
who are not satisfied with the product or wish to give feedback on the
products.

Positioning

Once a business has decided which segments of the market it will

compete in, developed a clear picture of its target market and defined its
product, the positioning strategy can be developed. Positioning is the
process of creating, the image the product holds in the mind of
consumers, relative to competing products. Coca Cola and Franklins both
make soft drinks; although Franklins may try to compete they will still be
seen as down market from Coca Cola. Positioning helps customers
understand what is unique about the products when compared with the
competition. Coca Cola plan to further create positions that will give their
products the greatest advantage in their target markets. Coca Cola has
been positioned based on the process of positioning by direct comparison
and have positioned their products to benefit their target market. Most
people create an image of a product by comparing it to another product,
thus evident through the famous battles between Coca-Cola and Pepsi
products.

89
Branding

It is often hard to say exactly why we buy one company’s product over
another. Companies such as Nike and Adidas spend large amounts of
money trying to win consumers away from their competitors who make
products that are very similar. The popularity of the brand is often the
deciding factor. Over the time Coca Cola has spent millions of dollars
developing and promoting their brand name, resulting in world wide
recognition. 'Coca-Cola' is the most recognized trademark, recognized by
94% of the world's population and is the most widely recognized word
after "OK". Coca Cola’s red and white colors and special writing are all
examples of world-wide trademarks.

There are a number of branding strategies: Generic brand strategy,

Individual brand strategy, Family brand strategy, Manufacturer’s brand
strategy, Private brand strategy and Hybrid brand strategy. Coca Cola
utilizes the Individual brand strategy as Coca Cola’s major products are
given their own brand names e.g. Fanta, Sprite, Coca Cola etc although
they maybe presented as different lines they operate under the name of
Coca Cola.

Packaging

Packaging, which is not as highly perceived by businesses, is still an

important factor to examine in the marketing mix. Packaging protects the
product during transportation, while it sits in the shelf and during use by
consumers; it promotes the product and distinguishes it from the
competition. Packaging can allow the business to design promotional
schemes, which can generate extra revenue and advertisements. Coca-
Cola has benefited from packaging the product with incentives and
endorsements on the labeling as a promotional strategy to increase its
volume of sales and revenue.

90
Price:

Price is a very important part of the marketing mix as it can effect both
the supply and demand for Coca Cola. The price of Coca Cola’s products
is one of the most important factors in a customer’s decision to buy. Price
will often be the difference that will push a customer to buy our product
over another, as long as most things are fairly similar. For this reason
pricing policies need to be designed with consumers and external
influences in mind, in order to effectively achieve a stable balance
between sales and covering the production costs.
Price strategies are important to Coca Cola because the price determines
the amount of sales and profit per unit sold. Businesses have to set a price
that is attractive to their customers and provides the business with a good
level of profit. Long before a sale was ever made Coca Cola had
developed a forecast of consumer demand at different prices which
inevitably determined whether or not the product came on the market, as
well as the allocation of adequate money and resources to produce
promote and distribute the product.

Pricing Strategies And Tactics

The pricing Strategy a business will use will have to focus on achieving
the marketing plan’s objectives and support the positioning of the
product, and take external factors such as economic conditions and
competitors in to account. There are 5 strategies available to business:
Market skimming pricing, Penetration pricing, Loss leaders, Price Points
and Discounts. Over the years Coca Cola has used Penetration Pricing as
a way of grabbing a foothold in the market and won a market share. It’s
product penetrated the marketplace. Once customer loyalty is established
as seen with Coca Cola it is then able to slowly raise the price of its
product. There has been a fierce pricing rivalry between Coca Cola and
Pepsi products as each company competes for customer recognition and
satisfaction. Till now it appears as if Coke has come up on top, although
in order to gain long term profits Coke had to sacrifise short term profits
where in some cases it either went under of just broke even, but as seen it
has been all for the best.

91
Pricing Methods

Good pricing decisions are based on an analysis of what target customers

expect to pay, and what they perceive as good quality. If the price is too
high, consumers will spend their money on other goods and services. If
the price is too low, the firm can lose money and go out of business.
Pricing methods include: Cost based Pricing, Market based pricing and
Competition based Pricing. Over the years Coca has lost ground here in
it’s pricing but has regained it’s strength as it employed the Competition-
based pricing method which allowed it to compete more effectively in the
soft drink market. Leader follower pricing occurs when there is one quite
powerful business in the market which is thought to be the market leader.
The business will tend to have a larger market share, loyal customers and
some technological edge, thus the case currently with Coke, it was first
the follower but through effective management has now become the
leader of the market and is working towards achieving the marketing
objectives of the Coca Cola. Survival in the market place, own 60 % of
market share by 2007, increase further awareness of product and a return
on 20% on capital employed for August 2007.

Promotion:

In today’s competitive environment , having the right product at the right

place in the right place at the right time may still not be enough to be
successful. Effective communication with the target market is essential
for the success of the product and business. Promotion is the p of the
marketing mix designed to inform the marketplace about who you are,
how good your product is and where they can buy it. Promotion is also
used to persuade the customers to try a new product, or buy more of an
old product.

92
The promotional mix is the combination of personal selling, advertising,
sales promotion and public relations that it uses in its marketing plan.
Above the line promotions refers to mainstream media:Advertising
through common media such as television, radio, transport, and
billboards and in newspapers and magazines. Because most of the target
is most likely to be exposed to media such as television, radio and
magazines, Coca Cola has used this as the main form of promotion for
extensive range of products. Although advertising is usually very
expensive, it is the most effective way of reminding and exposing
potential customers to Coca Cola Products. Coca Cola also utilizes below
the line promotions such as contests, coupons, and free samples. These
activities are an effective way of getting people to give your product a go.

Place and Distribution:

The place P of the marketing mix refers to distribution of the product- the
ways of getting the product to the market.The distribution of products
starts with the producer and ends with the consumer.
One key element of the “Place/Distribution” aspect is the respective
distribution channels that Coca Cola has elected to transport and sell its
product.

Selecting the most appropriate distribution channel is important, as the

choice will determine sales levels and costs. The choice for a distribution
channel for any business depends on numerous factors, these include:

• How far away the customers are;

• The type of product being transported;

• The lead times required; and;

• The costs associated with transport;

93
There are four types of distribution strategies that Coca Cola could have
chosen from, these are: intensive, selective, exclusive and direct
distribution. It is apparent from the popularity of the Coca Cola’s product
on the market that the business in the past used the method of intensive
distribution as the product is available at every possible outlet. From
supermarkets to service stations to your local corner shop, anywhere you
go you will find the Coca Cola products.

94
 CHAPTER - IV

RESEARCH METHODOLOGY

۩ RESEARCH OBJECTIVE
۩ RESEARCH ANALYSIS
۩ RESEARCH TESTS

95
۩ RESEARCH OBJECTIVE

OBJECTIVE OF SUTDY

 MAIN OBJECTIVE IS TO COMPARE THE DIFFERENT

PRODUCTS OF COCA-COLA WITH RESPECT TO
DISTRIBUTION CHANNEL AND SALES PROMOTION.

 TO KNOW WHICH PRODUCT OF COCA-COLA IS BEING SELL

MORE IN MARKET.

 ON WHICH PRODUCT OF COCA-COLA MORE EXPENSES ARE

MADE FOR SALES PROMOTION.

 WHICH PRODUCT OF COCA-COLA IS PROMOTED MORE IN

MARKET?

 ON TELEVISION WHICH PRODUCT OF COCA-COLA IS

SHOWN MORE DURING THE COMMERCIAL BREAKS?

 WHICH PRODUCT OF COCA-COLA IS MORE IN DEMAND

ACCORDING TO DISTRIBUTERS?

 USING CELEBRITIES IN ADVERTISING THE PRODUCTS OF

COCA-COLA CAN INCREASE THE DEMAND OF THE
PRODUCT OR NOT.

96
• SOURCES OF DATA

(1) Secondary Data

Sources form where secondary data had been collected are,

 Websites of the Company

 Magazines
 Newspapers
 Other Websites
 General idea from the managers of the Malls and Owner’s of the
Grocery shops regarding the sales of brands under study.
(Details are mentioned in annexure)

(2) Primary Data

Primary data was collected from the distributors and general public by
interviewing them and filling the questionnaire.

97
• QUESTIONNAIRE

 The questionnaire was structured in form and undisguised.

 The questions were framed in close – ended form so as to get similar

answers and analysis becomes easy.

 It was seen that the language of the questions framed was simple and
easy so as to avoid confusions and to attain more accuracy in
collecting data.

 It was taken care that questions were not framed in a way that would
go more personal to the person.

 It was seen that the general question were asked first and personal
questions were asked last.

 The number of questions in the questionnaire was kept less and most
of them contain supplementary options.

 SAMPLING METHOD
I adopted simple random sampling method to select sample for the
survey.

 SAMPLE SIZE
Among the different methods of selecting sample size like Adhoc and
Statistical, I have adopted the Adhoc method and decided the sample
size to be 100 for survey.( 25 for distributors and 75 for general
public).

98
۩ RESEARCH ANALYSIS
PRODUCT THAT SELL MORE IN MARKET
ACCORDING TO DISTRIBUTORS

9
8
7 8
SELL IN MARKET

6
5 6
4 5
3
2 3
1 2
1
0
THUMS- SPRITE COKE MAAZA FANTA LIMCA
UP
PRODUCTS

99
PRODUCT THAT REQURES MORE SALES
PROMOTION ACCORDING TO DISTRIBUTORS

8
7
7
6
SELL IN MARKET

5
4 5
3 4 4
2 3
1 2
0
THUMS- SPRITE COKE MAAZA FANTA LIMCA
UP
PRODUCTS

100
WHICH MARKETING ACTIVITY CAN INCREASE
SALES ACCORDING TO DISTRIBUTORS

16
14
12 14
10
NUMBERS

8
6
7
4
4
2
0
PUBLICITY PERSONAL SELLING ADVERTISEMENT
MARKETING ACTIVITY

101
WILL SALES PROMOTION CAN INCREASE SALES
ACCORDING TO DISTRIBUTORS

18
16
14 17
12
NUMBERS

10
8
6
4 5
2 3
0
YES NO CAN'T SAY
CATEGORY

102
DO LOCAL BRAND CAN AFFECT SALES OF COCA-
COLA ACCORDING TO DISTRIBUTORS

14

12

10 13
NUMBERS

8
8
6

4
4
2

0
YES NO CAN'T SAY
CATEGORY

103
 RANK 1 GIVEN

10
12

0
2
4
6
8

7
PROFIT

2
DEMAND

CUSTOMER
SATISFACTION 4

PARAMETERS
QUANTITY
2

SOLD
RANK 1 PARAMETERS GIVEN BY DISTRIBUTORS

QUALITY SOLD
10

104
PRODUCT THAT PREFERED MORE BY GENERAL
PUBLIC

AGE GROUP

12

20-25
13 35
26-30
31-35
ABOVE 35

15

105
PREFERED PRODUCT OF COCA-COLA BY GENERAL
PUBLIC

7
10 THUMS-UP
30 SPRITE
COKE
MAAZA
FANTA
15
LIMCA
5 8

106
RANK 1 PARAMETERS GIVEN BY GENERAL PUBLIC

25

20
RANK1 GIVEN

15

10
25
5 22
18
10

0
TASTE QUALITY BRAND PRICE
PARAMETERS

107
EDUCATION

SCHOOLING

GRADUATION

POST GRADUATION
20
25

30

108
IS PRODUCTS OF COCA-COLA ARE OVER PRICED
ACCORDING TO GENERAL PUBLIC

42
45
40
35 27
30
NUMBERS

25
20
15 6
10
5
0
YES NO CAN'T SAY
CATEGORY

109
DO ADVERTISEMENT CAN INCREASE SALES
ACCORDING TO GENERAL PUBLIC

47
50
45
40
35 26
NUMBERS

30
25
20
15
2
10
5
0
YES NO CAN'T SAY
CATEGORY

110
WHICH ADVERTISEMENT IS LIKED MUCH
ACCORDING TO GENERAL PUBLIC

25

20
NUMBERS

15 20
17
10 15

5 10
8
5
0
THUMS- SPRITE COKE MAAZA FANTA LIMCA
UP
PRODUCTS

111
۩ RESEARCH TESTS
TESTING OF HYPOTHESIS USING CHI-SQUARE TEST

1) Null Hypothesis (H0): Sales of Thums up and Maaza can be increase

by doing advertisement.
2) Alternative Hypothesis (H1) : Sales of Thums up and Maaza can not be
increase by doing advertisement.

OBSERVED FREQUENCY TABLE

PRODUCTS ADVERTISEMENT PUBLICITY TOTAL

THUMS UP 8 6 14

MAAZA 6 5 11

TOTAL 14 11 25

112
CHI-SQUARE TABLE

EXPECTED
OBSERVED
SR NO. FREQUENCY (OI-EI) (OI-EI)2/EI
FREQUENCY OI
EI
1 8 7.84 0.16 0.003

2 6 6.16 -0.16 0.004

3 6 6.16 -0.16 0.004

4 5 4.84 0.16 0.005

TOTAL 0.016

DEGREE OF FREEDOM: (C-1) (R-1) = 1

5% LEVEL OF SIGNIFICANT: Table value = 3.84
Statistical conclusion:
Table value is MORE then the calculated value i.e 0.016 so null
hypothesis is selected.

Conclusion:
Here null hypothesis is accepted that means Sales of Thums up and
Maaza can be increase by doing advertisement.

113
TESTING OF HYPOTHESIS USING Z -TEST

1) Null Hypothesis (H0): 30 % of people prefer Thums up.

2) Alternative Hypothesis (H1) : 30 % of people do not prefer Thums up.
3) Sample size : 75 people.
4) Level of significance: 2%

P = 0.30 and
q = 0.70

Observed sample proportion ( r ) = 30/75 = 0.4

The test statistic z=r–p
√
pxq
n
= 0.4 – 0.3
√0.3x0.7
75
= 0.1
0.05
= 2
R:│z│≥ 2.326
Conclusion:

The observed value of z is 2 which is in the acceptance region & as such

H0 is accepted.

114
 CHAPTER – V

PRODUCT ANALYSIS WITH THE

HELP OF BCG MATRIX

115
INTRODUCTION TO BCG MATRIX

T
he BCG matrix is based on the product life cycle theory that
can be used to determine what priorities should be given to a
business unit. This can be explaining with the help of
following FOUR fictitious business symbols.

 STARS :- Stars are high growth business competing in market where

they are relatively strong compared with the competition. They have a
high point shares and are the ideal businesses.

 CASH :- Cash cows are low-growth business with a relatively high

point shares. These businesses were stars but now have lost their
attractiveness.

116
 QUESTION MARK :- Question marks are businesses with low point
share but which may have a high growth rate. This suggests that they
have potential but may require huge ever, a competing force
extraordinary effort in order to grow point share.

 DOGS :- The term dog refer to businesses that have low relative share
and low expected growth rate. Dogs may generate enough points to
sustain but they are rarely, if ever, a competing force.

NOW ONE BY ONE POSITION OF EVERY PRODUCT OF COCA-

COLA WILL BE KNOWN WITH THE HELP OF BCG MATRIX.

MORE OVER THIS POSITION HAS BEEN DECIDED ON THE

BASIS OF THE SURVEY WHICH HAS BEEN CONDUCTED AND
RESULT OF WHICH IS ALSO GIVEN IN CHAPTER – IV.

117
POSITION OF THUMS-UP

118
POSITION OF MAAZA

119
POSITION OF LIMCA

120
POSITION OF COCA-COLA

121
POSITION OF SPRITE

122
POSITION OF FANTA

123
CHAPTER – VI

SWOT ANALYSIS

124
S
WOT stands for Strengths Weakness Opportunities Threats.
SWOT analysis is a technique much used in much general
management as well as marketing scenarios. SWOT consists of
examining the current activities of the organization- its Strengths
and Weakness- and then using this and external research data to set out
the Opportunities and Threats that exist.

Strengths:

Coca-Cola has been a complex part of world culture for a very long time.
The product's image is loaded with over-romanticizing, and this is an
image many people have taken deeply to heart. The Coca-Cola image is
displayed on T-shirts, hats, and collectible memorabilia. This extremely
recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed
more than 685 million times a day around the world Coca-Cola stands as
a simple, yet powerful symbol of quality and enjoyment" (Allen, 1995).
Additionally, Coca-Cola's bottling system is one of their greatest
strengths. It allows them to conduct business on a global scale while at
the same time maintain a local approach. The bottling companies are
locally owned and operated by independent business people who are
authorized to sell products of the Coca-Cola Company. Because Coke
does not have outright ownership of its bottling network, its main source
of revenue is the sale of concentrate to its bottlers.

Weaknesses:

Weaknesses for any business need to be both minimised and monitored in

order to effectively achieve productivity and efficiency in their business’s
activities, Coke is no exception. Although domestic business as well as
many international markets are thriving (volumes in Latin America were
up 12%), Coca-Cola has recently reported some "declines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing
power." According to an article in Fortune magazine, "In Japan, unit case
sales fell 3% in the second quarter [of 1998]...scary because while Japan
generates around 5% of worldwide volume, it contributes three times as
much to profits. Latin America, Southeast Asia, and Japan account for

125
about 35% of Coke's volume and none of these markets are performing to
expectation.

Coca-Cola on the other side has effects on the teeth which is an issue for
health care. It also has got sugar by which continuous drinking of Coca-
Cola may cause health problems. Being addicted to Coca-Cola also is a
health problem, because drinking of Coca-Cola daily has an effect on
your body after few years.

Opportunities:

Brand recognition is the significant factor affecting Coke's competitive

position. Coca-Cola's brand name is known well throughout 94% of the
world today. The primary concern over the past few years has been to get
this name brand to be even better known. Packaging changes have also
affected sales and industry positioning, but in general, the public has
tended not to be affected by new products. Coca-Cola's bottling system
also allows the company to take advantage of infinite growth
opportunities around the world. This strategy gives Coke the opportunity
to service a large geographic, diverse area.

Threats:

Currently, the threat of new viable competitors in the carbonated soft

drink industry is not very substantial. The threat of substitutes, however,
is a very real threat. The soft drink industry is very strong, but consumers
are not necessarily married to it. Possible substitutes that continuously put
pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot
chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the
entire beverage market, the changing health-consciousness of the market
could have a serious affect. Of course, both Coke and Pepsi have already
diversified into these markets, allowing them to have further significant
market shares and offset any losses incurred due to fluctuations in the

126
market. Consumer buying power also represents a key threat in the
industry. The rivalry between Pepsi and Coke has produce a very slow
Moving industry in which management must continuously respond to the
changing attitudes and demands of their consumers or face losing market
share to the competition. Furthermore, consumers can easily switch to
other beverages with little cost or consequence.

127
 CHAPTER – VII

SOCIAL RESPONSIBILITY

128
coca-cola in India

C
oca-Cola, the corporation nourishing the global community
with the world’s largest selling soft drink concentrates since
1886, returned to India in 1993 after a 16 year hiatus, giving a
new thumbs up to the Indian soft drink market. In the same
year, the Company took over ownership of the nation’s top soft-drink
brand and bottling network. It’s no wonder our brands have assumed an
iconic status in the minds of the world’s consumers.

A Healthy Growth to The Indian Economy

Ever since, Coca-Cola India has made significant investments to build

and continually consolidate its business in the country, including new
production facilities, waste water treatment plants, distribution systems,
and marketing channels.

Coca-Cola India is among the country’s top international investors,

having invested more than US$ 1 billion in India in the first decade, and
further pledged another US$100 million in 2003 for its operations.
A Pure Commitment to The Indian Economy
The Company has shaken up the Indian carbonated drinks market greatly,
giving consumers the pleasure of world-class drinks to fill up their
hydration, refreshment, and nutrition needs. It has also been instrumental

129
in giving an exponential growth to the country’s job listings.

Creating Enormous Job Opportunities

With virtually all the goods and services required to produce and market
Coca-Cola being made in India, the business system of the Company
directly employs approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related industries through
its vast procurement, supply, and distribution system.

The Indian operations comprises of 50 bottling operations, 25 owned by

the Company, with another 25 being owned by franchisees. That apart, a
network of 21 contract packers manufacture a range of products for the
Company.

On the distribution front, 10-tonne trucks – open bay three-wheelers that

can navigate the narrow alleyways of Indian cities – constantly keep our
brands available in every nook and corner of the country’s remotest areas.

These are only some of the facts that speak about our commitment to the
growth of the Indian Economy.

Our promise

The Coca-Cola Company believes our business has always been based on
the trust consumers everywhere place in us-trust that is earned by what
we do as a corporate citizen and by our ability to live our values as a
commercial enterprise.

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There is much in our world to celebrate, refresh, strengthen and protect.

Through our actions as local citizens, we strive every day to

Refresh the marketplace
Enrich the workplace
Preserve the environment
Strengthen our communities

At the heart of our business is the trust consumers place in us. They
rightly expect that we are managing our business according to sound
ethical principles, that we are enhancing the health of our communities,
and that we are using natural resources responsibly.

Charter - Our Four Guiding Principles of Citizenship

Refresh the marketplaces we will adhere to the highest ethical standards,

knowing that the quality of our products, the integrity of our brands and
the dedication of our people build trust and strengthen relationships.

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We will serve the people who enjoy our brands through innovation,
superb customer service, and respect for the unique customs and cultures
in the communities where we do business.

Enrich the workplace

We will treat each other with dignity, fairness and respect.

We will foster an inclusive environment that encourages all employees to

develop and perform to their fullest potential, consistent with a
commitment to human rights in our workplace.

The Coca-Cola workplace will be a place where everyone's ideas and

contributions are valued, and where responsibility and accountability are
encouraged and rewarded.

Preserve the environment

Our approach to environmental issues is guided by a simple principle: We

will conduct our business in ways that protect, preserve and enhance the
environment.

The Coca-Cola EKO System translates this principle into action by

establishing a framework for successfully managing our environmental
performance worldwide.

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Strengthen the community

We will contribute our time, expertise and resources to help develop

sustainable communities in partnership with local leaders.

We will seek to improve the quality of life through locally-relevant

initiatives wherever we do business.

WATER MANAGEMENT

Water Conservation
Jal Tarang- a Festival to celebrate Water & Culture

Coca-Cola India Collaborates with UN-HABITAT to Improve Access

to Water & Sanitation in India & Nepal

Kolkata Mayor dedicates Rain Water Harvesting System, launches a

film on Water Conservation

Coca-Cola & UN- Habitat to set up 16 Rain Water Harvesting Projects

in Madhya Pradesh

Spreading Awareness On Water Conservation At Educational

Institutions

Coca-Cola Employees Spearhead Mass Awareness Drive On Water

Conservation & PET Recycling On Radio Mirchi

Coca-Cola India dedicates Roof-Top Rain Water Harvesting Project in

Jaipur

Think Green, Go Green

Every Drop Counts - International Water Conference, 2007

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Statement from Coca-Cola India on the Assessment of Water Resource
Management Practices by TERI

World Water Day Celebrations-South Region

Coca-Cola launched two Rain Water Projects launched in Delhi

Coca-Cola launched two Rain Water Projects launched in Delhi

Mayor of Kolkata dedicates Rain Water Harvesting System, launches a

film on Water Conservation

Coca-Cola launches Rain Water Harvesting Projects in Gurgaon

Central Region Celebrates World Water Day

Coca-Cola India installs Rain Water Harvesting Structure in

Jamshedpur

World Water Day Celebrations-South Region

Coca-Cola celebrates World Water Day with School Children

World Water Day Celebrations!

Coca-Cola India dedicates three Rain Water Harvesting Projects to the

Community in Varanasi

Coca-Cola Launches Eight New Rain Water Harvesting Structures

Three Rain Water Harvesting Projects dedicated to the Community

Coca-Cola India Celebrates World Water Day

Coca-Cola India spearheads "Jaladhaare Karavan"

Coca-Cola Foundation supports ’Watershed Development’ Projects in

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collaboration with CII & ICRISAT

Cola-Cola India wins the Bhadigari award from the Delhi government
for its efforts in community development

Coca-Cola india dedicates five new rain water harvesting projects to

the community

Rain Water Harvesting in Thar Desert Area with Jal Bhagirathi

Foundation

Rain Water Harvesting in Atmakuru - Andhra Pradesh

Rain Water Harvesting in Kerala & Alleviating Water Shortage problem

Rain Water Harvesting in Kaladera - Jaipur

Rajasthan Minister Prof. Sanwar Lal Jat dedicates Sarai Bawari to the
community

Coca-Cola organizes a seminar on "Rainwater Harvesting: Socio-

Economic Benefits of Creating Water Security"

Catching Water where it Falls

Government of Rajasthan invites Division President to head work

group on Water Conservation

Rain Water Harvesting - Select projects with Delhi Govt s. Bhagidari

Scheme

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Citizenship in action

Preserving Our Environment

Coca-Cola Wins Another Gold Award For Its Citizenship Efforts

Coca-Cola Joins Hands To Help The Flood Affected In Bihar

Central Region Celebrates World Water Day

Education
Coca-Cola Restores Education & Welfare to the Children in Kashmir
Valley

Coca-Cola India installs Rain Water Harvesting Structure in

Jamshedpur

Coca-Cola Constructs A New School For Tsunami Affected In Sri

Lanka

Health
Warangal Meet Ends, Witnesses Active Participation from Rural Youth

Coca-Cola India supports Perfect Health Mela for 5th consecutive year
towards its commitment to Health and Wellness

Over 750 participants of Thums Up Rural Games hit the grounds of

Gadag, Karnataka

Water Conservation
Jal Tarang- a Festival to celebrate Water & Culture

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Coca-Cola India Collaborates with UN-HABITAT to Improve Access
to Water & Sanitation in India & Nepal

Kolkata Mayor dedicates Rain Water Harvesting System, launches a

film on Water Conservation

And More....
Coca-Cola Joins Hands To Help The Flood Affected In Bihar

Coca-Cola India announces the launch of Thums Up Rural Games

CIFA - Thums Up Rural Games, 2007 Connect with the Global Virtual
World- launch an interactive website

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CHAPTER – VIII

CONCLUSION

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F rom the survey done on distribution channel and sales promotion
it was concluded that according to distributors among all the
products of coca-cola thums-up is more in demand.

More over when the question was asked that which product of coca-cola
requires more sales promotion then the answer came was coke.

Also 17out of 25 agreed with the statement that sales promotion can
increase sales.

When question was asked that which marketing activity can increase
sales then the answer came that advertising can help more in increasing
the sales of products of coca-cola.

When the question was asked that out of different parameters which is the
most important parameter for them that affects their business the most
then the answer came that for them quality sold is most important
parameter.

When the question asked to general public that which is their preferred
soft drink among different products of coca-cola then most of them liked
thums-up.

Again when they were asked to give rank 1 parameter to the products
according to their preference then most of them have given rank 1 to taste
of different products of coca-cola.

When they were asked that whether they feel that the price of products of
coca-cola are over priced or not then 42 out of 75 agreed that price are
more then it should be.

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CHAPTER – IX

BIBLIOGRAPHY

140
 BOOKS

a. Philip Kotler; “Marketing Management”; Prentice-Hall India

(PHI); 11th Edition; Pg. No. (418-432).

b. Philip Kotler, Gary Armstrong; “Principle of Marketing”; Prentice-

Hall India (PHI); 10th Edition; Pg. No. (141-164).

c. G. C. Beri; “Modern Marketing Research”; 3rd Edition; Pg. No. (4-

346).

 MAGAZINES

1. Business Today
2. Outlook
3. Insight
4. Advance Edge

 NEWSPAPERS

1. The Times of India

2. The Economics Times
3. Business Times

 WEBSITES

www.google.com

www.cokeiindia.com
www.coca-colaindia.com
www.oligopolywatch.com
www.superbrand.com

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CHAPTER – X

ANNEXURES

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 QUESTIONNAIRE FOR DISTRIBUTERS

GENERAL INFORMATION

1. According to you which product of COCA-COLA requires more

sales promotion?

Thums up Sprite Coke

Maaza Fanta Limca

2. According to you which product of COCA-COLA is sale more in

market / demand more in market?

Thums up Sprite Coke

Maaza Fanta Limca

3. Do you think by doing sales promotion it will increase the sells of

any product of COCA-COLA?

Yes No Can’t say

4. Do you think if COCA-COLA Company provides any schemes to

distributors then it will affect the sell of any product of COCA-
COLA?

Yes No Can’t say

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5. Being distributor give parameter to the following according to your
preferences / importance.

Profit Demand Customer satisfaction

Quantity sold Quality sold

6. According to you which marketing activity will increase the

demand of product of COCA-COLA?

Publicity Personal selling Advertisement

7. Do you think local brands of soft drink can affect the demand of
COCA-COLA?

Yes No Can’t say

PERSONAL INFORMATION

Name: ------------------------------------------------------------------------

Bussiness experience: -

Quantity of selling during one month: -

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 QUESTIONNAIRE FOR GENERAL PUBLIC

GENERAL INFORMATION

1. Give three names of COCA-COLA products that comes to your

mind first.

A)______________ B)_____________ C)________________

2. Which product of COCA-COLA do you prefer more?

Thums up Sprite Coke

Maaza Fanta Limca

3. Give parameter to the following according to your likings /

preference.

Taste Quality Brand Price

4. Do you think product of COCA-COLA having good market?

Yes No Can’t say

5. Do you think product of COCA-COLA are over priced?

Yes No Can’t say

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6. Do you think product of COCA-COLA are good for health?

Yes No Can’t say

7. Do you think using celebrities for advertisement for any product of

COCA-COLA can affect the sale?

Yes No Can’t say

8. Which advertisement of the following product of COCA-COLA

you like the most?

Thums up Sprite Coke

Maaza Fanta Limca

PERSONAL INFORMATION

Name: ------------------------------------------------------------------------

Age: -
20 to 25 26 to 30 31 to 35
Above 35

Education:- Schooling Graduation Post Graduation

Yearly income:- Less than 50000 50001 to 100000

100001 to 150000 Above 150000

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